India's sugar production is set to plunge to its lowest levels in the last seven years, prompting the government to allow duty-free imports of 500,000 tonnes of raw sugar to balance the demand and supply ratio. The estimates of production in sugar season 2017-18 (October to September) put this below the 20 million tonne mark, the lowest since 2009-10. The production was pegged at 25.1 million tonnes last year. 

The duty-free imports announced on Wednesday will continue till June 12 and follow consistent lobbying by refiners, who claimed a possible spike in retail prices due to widening of demand and supply gap in the wake of lower production. There is a 40 per cent duty on sugar imports. Refiners have been urging the government to reduce the duty to meet the gap between demand and supply.

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